Glossary of Municipal Securities Terms

TRUSTEE

A financial institution with trust powers, designated by the issuer or borrower, that acts, pursuant to a bond contract, in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. In many cases, the trustee also acts as custodian, paying agent, registrar and/or transfer agent for the bonds. See: INDENTURE; PAYING AGENT; REGISTRAR; TRANSFER AGENT; BOND CONTRACT.

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